Mobile network operators (MNOs) are responsible for an increasingly large portion of the communications network infrastructure in the modern world. Typically, MNOs are defined as companies that have both a licensed frequency allocation of the radio spectrum over which they can operate, and the required infrastructure needed to run an independent mobile network. Such infrastructure may include, for example, GSMs (global systems for mobile communications), CDMAs (code division multiple access systems, which are digital radio systems that transmit streams of bits or PN codes) and other core mobile network related infrastructure, such as mobile switching centers (MSCs) and a radio access network.
As mobile networks have continued to develop, the companies providing the services required to operate and use these networks have had to adopt newer business models to keep pace with evolving consumer demands. In combination with changing government regulations, this has led to the evolution of mobile virtual network operators (MVNOs).
Unlike MNOs, MVNOs do not have their own licensed frequency allocation, and frequently do not even have all of the infrastructure required to provide mobile communications. Instead, MVNOs work in concert with other companies having these assets to provide mobile communications platforms to customers. In some instances, a company may operate as both an MNO and an MNVO. For example, if an MNO lacks a frequency spectrum allocation in a particular geographical region, it may operate as an MVNO in that region.
Significant efficiencies are obtained by the MVNO business model, since an MVNO does not incur the significant capital expenditure on spectrum and infrastructure that an MNO does, nor does it have the time consuming task of rolling out extensive radio infrastructure. Rather, this division of responsibilities allows MVNOs to concentrate on their role of value-added service providers, while many aspects of network maintenance and operation are performed by other companies behind the scenes.
The continued evolution of mobile communications networks has brought about even further specialization of services. Hence, while some MVNOs run their own billing and customer care solutions (commonly known in the art as business support systems (BSS)), others delegate these services to a mobile virtual network enabler (MVNE). MVNEs provide services to MVNOs such as billing, network element provisioning, administration, operations, support of base station subsystems and operations support systems, and provision of back end network elements, to enable provision of mobile network services such as cellular phone connectivity.
A MVNE typically does not have a relationship with end-user customers. Instead, an MVNE provides infrastructure and services to enable MVNOs to offer services and have a relationship with end-user customers. Hence, MVNEs allow MVNOs to focus on their core strengths (typically brand, customer loyalty and marketing), while leaving the back-end enablement and operations to the MVNEs. An MVNE typically also has shared risk-reward arrangements with the MVNO with various kinds of revenue sharing models which are usually tied to the number of subscribers that the MVNO has projected in their business plan.
From a systems standpoint, designing an MVNE is a complex process that frequently includes taking commercial off-the-shelf applications and converting them to work in a multi-tenancy model in a seamless fashion. Here, multi-tenancy refers to the principle in software architecture where a single instance of the software runs on a server, serving multiple client organizations (tenants). Multi-tenancy may be contrasted with a multi-instance architecture where separate software instances (or hardware systems) are set up for different client organizations.
With a multitenant architecture, a software application is designed to virtually partition its data and configuration, and each client organization works with a customized virtual application instance. In a multi-tenancy environment, multiple customers share the same application, running on the same operating system, on the same hardware, with the same data-storage mechanism. The distinction between the customers is achieved during application design, and hence, the customers do not share or see each other's data.
There are currently three main types of MVNEs. These may be categorized according to their MVNO solutions:
(a) Aggregator MVNEs: these offer consulting and integration services and have bundled all of the back-office network components through alliances. These promote their ability to quickly provide order-to-cash solutions to MVNOs.
(b) Aggregator MVNEs with their own service delivery platforms (SDPs): this includes aggregators which have developed one or more back-office solutions internally, and have complemented them with partnerships to provide end-to-end enablement services.
(c) Specialized enablers: these offer only parts of the back-office network such as messaging platforms, data platforms and billing solutions. They are not solely focused on the MVNO market.
The SDP associated with an MVNE is a set of components that provides a service delivery architecture (such as service creation, session control & protocols) for a particular type of service. SDPs became popular with the introduction of open standards as IP technologies were introduced, and with the rapid expansion of Voice-over-IP (VoIP) for transmission of voice data over packet networks and the Session Initiation Protocol (SIP) for standardized media control, especially regarding enterprise voice communication. In this new standards-supported environment, convergence of the voice and data worlds has become an avenue for the production of new and better consumer and business services.
The last few years have seen the introduction and proliferation of various SIP programming libraries and products based on the relatively new SIP standard, and the IP Multimedia Subsystem standard defined by the 3GPP (a collaboration between groups of telecommunications associations to make a globally applicable third-generation (3G) mobile phone system specification) has gained a substantial following. SDPs, whose power comes in large part from the quality and acceptance of these supporting standards, are rapidly gaining acceptance as widely applicable architectural patterns. SDPs are commonly considered for the telco type environments as core systems which interconnect the customer's access and network infrastructure with BSS and OSS systems (operational support systems), the computer systems used by telecommunications service providers (the term OSS is most frequently used to describe “network systems” dealing with the telecom network itself, supporting processes such as maintaining network inventory, provisioning services, configuring network components, and managing faults). SDPs in this context are usually associated to a particular service regime such as mobile telephones or for converged services.